The Lagos State Commissioner for Energy and Mineral Resources, Olalere Odusote, has shown confidence in the state’s ability to carry out the 2023 Electricity Act.
In a recent statement posted on social media, he claimed that the Babajide Sanwo-Olu government is totally dedicated to advancing the implementation of a strong Lagos Electricity Market.
This entails creating a framework that is both commercially successful and contributes to the socioeconomic advancement of Lagos State, ensuring the sector’s economic sustainability.
According to the honorable Commissioner’s statement from June 15: “The Electricity Act 2023 recently received the president’s assent. Lagos State has consistently anticipated this and has taken preventative measures in the direction of a viable Lagos Electricity Market which fully caters to the needs of its residents.
“The BOS administration, in 2022, developed a thorough Integrated Resource Plan that seeks to improve overall energy security for Lagos State and provide direction for development planning for the next 20 years to meet an anticipated 400% increase in peak electricity demand by 2040.”
The new 2023 Electricity Act law has the effect of demonopolizing Nigeria’s national power-producing, transmission, and distribution sectors.
The law gives states, businesses, and people the authority to produce, transfer, and distribute electricity. It also specifies how the Nigerian Electricity Regulatory Commission will transfer its regulatory duties to them.
Therefore, until a state passes its power market regulations, NERC will continue to oversee electricity transactions only made in those states.
According to the 2023 Electricity Act, without a license, anyone may construct, own, or operate an undertaking for generating electricity not exceeding 1 megawatt in aggregate at a site, or an undertaking for distribution of electricity not exceeding 100 kilowatts in aggregate at a site, or such other capacity as NERC may determine from time to time.
